Bug: Word prediction broken while editing mispelled words

Word prediction is still broken in 1.0.2.5. While writing a new email, if I tap "hoe" (when I meant "how") I can see "how" listed in the word prediction list, but if I continue to type and then later on put the text selection carat between the "o" and "e" of "hoe", I'm not offered "how" as a predicted word. Instead, I'm offered total nonsense: "to", "chi", "Gaye", "jaye", "hi", "the" etc. but not "how" or anything remotely like "how". If I move the carat to between the "h" and "o" of "hoe", I'm offered a completely different predicted word list ("I", "as", "you", "is", "have", "to", "ago") suggesting the predicted word list is somewhat random, or at least not based at all on the word being edited, as I'm not sure why the carat position within a word should influence the predicted word.